Every person who studied Technical Analysis knows that one of the drivers of Price Change is Volume. Several training courses show the monitoring of Volume changes using a Moving Average within the Volume indicator in order to let the trader identify changes in its behavior. Since the trader have to visually follow every aspect of his/her trade, it is very easy for him/her to miss a breakout of the Volume Average at that moment.
The proposal of this indicator is to present the volume data BELOW the average set by the trader in very pale colors. When a breakout of this average is happening, the bar in the histogram becomes All Color, presenting a GREEN color for an UPTREND, and a RED color for a DOWNTREND…
Please note that this behavior is NOT necessarily always true, because we can have situations – e.g.: following the information in Tape reading – where the volume is theoretically in an Uptrend but is being absorbed by the SELL side, ending in a Downtrend…
That said, and along with your Trading System, I hope that this indicator be helpful for those trading manually…
This indicator looks to be helpful in trading; however, it does not display in the indicator window of my MT5 platform. There is either a bug in the code or the indicator is not compatible with build 2560. Could you check the code and let me know, so that I can try it and comment on its use.
If your are using for Forex, it will NOT work… 😉